In this past year, many people have decided to start their own small business from home. Running a business is challenging already, let alone trying to manage it from your living room by yourself. There are so many elements to keep track of when it comes to a small business: product development, customer service, and finance management. Accounting and finances are some of the most crucial elements to keep track of in your business, especially once tax season comes around!. It may be manageable in the beginning when your business is new, but as it grows, it may become too much to handle on your own. If you start encountering some of these issues below, you may consider hiring a bookkeeper for your business.
Bookkeeping Takes Up Too Much Time
Small business owners tend to work more hours per week, so burnout is a prevalent problem. Not only does doing your bookkeeping take time, but it also costs you money in the long run. Keep track of how long it takes to do your bookkeeping and calculate how much your time is worth in dollars. If you find you are losing more money than your making, it is not worth continuing to do your bookkeeping. Once you begin treating your time spent on accounting as an expense, it will be easier to see the benefits of hiring a bookkeeper.
Your Bookkeeping is Falling Behind
It is necessary to keep your books up to date to determine how your business is doing currently. If you haven’t updated your finances in a month or two months, your records won’t accurately reflect how much profit you made in that time. Falling behind on regular bookkeeping also means that you will have to play catch up during tax season, which can cause even more stress. Hiring a bookkeeper ensures that your records are updated regularly.
You Miss Out on Deductions
Tax preparation can be a complicated process. It requires very fine attention to detail and mathematical skills. You need to properly document and categorize every single transaction to get the maximum tax deductions. If you lose track of your documents or file something incorrectly, it can lead to consequences. You may miss out on deductions that would save you money. At worst, you may be contacted by the IRS and have to pay fees or penalties. Part of a bookkeeper’s job is to take every business expense you incur and categorize it properly. In the process of doing so, they’re able to spot obvious deductible expenses.
Contact Bowman & Company CPA Today
Bowman & Company CPA, PC provides all of our individual and small business customers with experienced, accurate, and affordable financial services. Our financial services aim at decreasing your taxes and increasing your net worth through responsible, timely, and accurate recordkeeping. We offer our services to clients throughout the Washington, D.C. metropolitan area including Maryland and Baltimore County, Columbia, and Howard County. For more information on our offerings, contact us online or call us at (410) 381-8121. You can also find us on Twitter, Linkedin, Facebook, and Youtube.